Shenzhen Children'S Clothing Enterprise 60% Hard To Earn A Living

Jian (a pseudonym) strode into a shop near the roadside and asked for a bottle of frozen "Red Bull". He drank it with a strong heart and then breathed a long sigh of relief.

It is hard for him to think that why he thought he had a good relationship with the personnel in the market because he thought the activity negotiation was so difficult that the attitude of the mall side became so tough and resolute.

In recent years, great changes have taken place in the retail industry in Shenzhen. There is a wave of activities in shopping malls, and sales promotion efforts have been doubled. If he accepts the sales promotion conditions of the shopping malls, it means that there is no profit whatsoever.

According to incomplete statistics, the number of children in Shenzhen is estimated to be over 100. Behind the "prosperous" children's clothing industry, the survival situation of Shenzhen's children enterprises is worrying. Over 60% businesses are making a living in difficulties. A person who has been engaged in children's wear for a long time in Shenzhen is telling the author.

Survey one: over 60% enterprises are struggling to operate

"At the beginning, when we chose to invest in this industry, we never considered that the market became so confusing. The subjective consciousness that the market representation imposed on us made a mistake. It is concluded that children's clothing is not cheap at present, and hundreds of millions of dollars are easily seen.

However, the company has been operating for over a year, and the backlog of inventory is increasing. The larger the warehouse area is, the more the cash flow is lagging behind, and all the work is in a passive position.

A boss of a children's clothing enterprise in Shenzhen told the writer helplessly.

Shenzhen children's clothing industry originated in 95 or 96 years, and developed in 1998-2003 years. At that time, it was still in the seller's market. As long as there was a product and then found a stall, it could earn money every day, but it didn't last long. After five years of high-speed running, Shenzhen children's clothing industry will now enter another pformation period.

Because of this basic background, Shenzhen children's clothing industry is bound to usher in a major reshuffle.

Perseverance is success, lasting perseverance is exclamation, on the other hand, it also reflects some business operators' mentality of winning luck in the market. In the autumn of 2008, a brand of children's clothing in Shenzhen persisted after seven years and left behind more thoughts in the industry.

Another boy in Shenzhen who has just started the sale of children's wear is analyzed to listen to me: in Shenzhen, he is the first echelon of leaders, such as JOJO, ugly, Xiao Feng long, Ke Ke, Qing Guo Guo, who have better management level and product image. They are already deeply rooted in the market.

Most other brands are in the two or three tier, and their business is not optimistic.

Survey two: lack of competitiveness in product homogenization

"We will only introduce appropriate brand names for children's clothing in Shenzhen."

In late December 2009, Liu Nu Shi in Shenyang took the relevant information of a children's clothing brand in Shenzhen and went to the shopping mall to discuss with him. This is the first sentence that the other party threw to her.

Miss Liu looked puzzled. She really couldn't understand what the other person was saying.

Coincidentally, a client of my company has encountered similar problems in a commercial and commercial building in Nanjing.

In early April of this year, when I was on a business trip in Dalian, I talked with a friend of the general manager of a shopping mall. He spoke straight through the reasons. The children's clothing in Shenzhen is indeed very fashionable and bright, but the homogenization of the products is relatively serious.

"When China's economy is experiencing negative growth around the world, it can still maintain strong growth. We are very optimistic about China's economy and the development of children's clothing industry in China, but the design of children's wear brands in China is far behind the development of China's economy, and Mo Yan is in line with international standards."

This is the voice from Zhou Yanwen, the director of ROOKIKIDS children's wear brand project.

The overall level of children's clothing industry in Shenzhen is not high. Its biggest worry is "similarity", lacking enough independent design ideas and language, and not enough attention has been paid to the overall and consistency of product development strategies.

{page_break}

Survey three: various promotions weaken intermediate profits of enterprises

"I don't want to stick to it. I sold nearly twenty thousand yuan last month, and I have not made much profit since I get rid of miscellaneous expenses and expenses."

Liu Daohuang, an agent for children's clothing in the Central District of Longgang, Shenzhen, said angrily to the author.

No sales promotion, no sales, shopping malls to survive, every trick, all kinds of promotional means only unexpected, not afraid to fail.

Three days 72 hours continuous business, buy 100 to send 200, 200 yuan cash to 680 yuan coupons, the whole venue to 1 fold, limited time rush to buy and other activities aimed at consumers' pockets, their ultimate goal is to let consumers irrational payment.

As a supplier of shopping malls, there are many kinds of promotional expenses and promotion strategies, which are sometimes too low to 70 percent off.

If enterprises want to survive in the cracks, they must have good products and styles to attract consumers. On the other hand, they must set the right price according to the market, and finally have to face the unrestrained promotional activities of the mall.

"We are now slowly giving up the mall, the main store, and we only have one or two image stores in the Shenzhen stronghold. We analyze from the data in recent years: the number of exclusive stores in our province outside the province increases with the days, while the counters in shopping malls decrease significantly," said Zhao Xin, the manager of the Shenzhen children's clothing department, Weijl Per.

Increasingly fierce shopping malls, coupled with the disorderly competition between brands and brands, makes Shenzhen children's wear industry lose the most basic and bottom line profit margins.

Survey four: enterprise mentality of quick success and instant benefit

Whether the defect of the product itself or the reasonable profit space has been weakened by reality, the enterprise mentality of Shenzhen children's clothing enterprise operators eager for quick success and instant benefits can not be ignored.

Blindly demand rapid development, blindly pursue the number of shops, part of the children's clothing enterprises in Shenzhen mentality has become distorted.

In November 2008, a new brand of children's clothing was born in Futian District, Shenzhen. When the company was born, the children's clothing industry in Shenzhen aroused great joy. First, after frequent digging in the children's wear industry in Shenzhen, the company changed offices frequently, and then set up offices in the whole country.

Let us look at China's macroeconomic policy again. From the beginning of 2007, it was tight, and by the end of 2008, it suddenly relaxed. Then, at the beginning of 2010, it was tightened again and again. The high frequency of macroeconomic regulation and control repeatedly indicated that China's economy has become increasingly difficult to control, and macroeconomic regulation and control has become increasingly inadequate.

In the face of such a situation, operators should grasp the business from the macro economy, develop products that are marketable, and strive for market discourse.

It is true that we hope that the government departments in charge will cooperate with industry associations to give more professional training and guidance to children's clothing enterprises in Shenzhen, and help them change their business models so that the whole industry can continue to develop.